Tax Backlog: MultiChoice Explains Debt Position
MultiChoice Nigeria has said the directive issued by the Tax Appeal Tribunal (TAT) does not compel it to make payment of 50 per cent of N1.8 trillion, being half of the disputed tax assessment, which is under appeal.
Rather, MultiChoice, owners of cable television services, DStv and GOtv, explained in a statement Wednesday, that the directive issued by TAT, in accordance with paragraph 15(7) of the Fifth Schedule to the Federal Inland Revenue Service (FIRS) Establishment Act, requires it (MultiChoice Nigeria) to deposit with FIRS an amount equal to the tax paid by MultiChoice Nigeria in the preceding year of assessment or one half of the disputed tax assessment under appeal, whichever is the lesser amount plus 10 per cent.
The South Africa-owned firm, which claimed to be a law-abiding corporate citizen and would continue to engage constructively with FIRS in an attempt to resolve this matter, said the lesser amount is the tax paid by it (MultiChoice Nigeria) in the previous assessed year, which is substantially less than the disputed assessment.
The statement reads: “MultiChoice Nigeria has noted today’s media statement on the Tax Appeal Tribunal appeal hearing held on August 24, 2021.
“The direction issued by the TAT does not compel MultiChoice Nigeria to make payment of 50 per cent of N1.8 trillion, being half of the disputed tax assessment, which is under appeal.
“The direction issued by the TAT in accordance with paragraph 15(7) of the Fifth Schedule to the FIRS Establishment Act requires MultiChoice Nigeria to deposit with FIRS an amount equal to the tax paid by MultiChoice Nigeria in the preceding year of assessment or one half of the disputed tax assessment under appeal, whichever is the lesser amount plus 10 per cent. The lesser amount is the tax paid by MultiChoice Nigeria in the previous assessed year, which is substantially less than the disputed assessment.
“MultiChoice Nigeria is a law-abiding corporate citizen and continues to engage constructively with FIRS in an attempt to resolve this matter.”
